Savings Month: Tips for saving money for your commuter transport business
As July is Savings Month we look at the importance of saving. This is more relevant ever before as many are forced to rebuild in various communities and continue to battle the impact of the pandemic, it is even more critical for people to be money smart.
Saving, even small amounts, is important for our financial well-being and for entrepreneurs to have long-lasting businesses that will grow and to ensure their sustainability. This National Savings Month there is no better time for entrepreneurs in the commuter transport industry to ensure they save or cut back wherever possible, when it comes to the operating cost of their businesses.
To assist entrepreneurs in taking a Sho’t Left to a better financial position and more cost breathing room in toe, CTU, a specialist insurance underwriting manager for the commuter transport industries offers a few ways through which taxi owners and operators, eHailing vehicle owners, and the like can reduce costs, avoid unnecessary charges, and ensure your on-going coverage.
#1 Insure according to your needs and budget
Small business owners such as minibus taxi operators or entrepreneurs who cannot afford comprehensive cover for their vehicles do not have to go uninsured! There are different options including the ability to purchase third party cover to insure against damage to the property or vehicles of others. This ensures that they make provision that will protect their business against third party claims, and potential losses resulting from an accident when they are liable.
Beyond ensuring the vehicle, entrepreneurs can look at other products to cover their business needs. For instance, loss of income coverage ensures that if a vehicle has been in an accident and is being repaired thanks to the insurance claim, you can still cover your monthly costs. Even when your taxi or the tool of your trade is down for repairs your income is protected. Afterall, the running costs for your business, like vehicle finance instalments still need to be paid even when your vehicle cannot operate and generate revenue for your business. With loss of income insurance cover, you can still take care of these monthly operational costs.
#2 Pay insurance and other financial commitments on time
Other than the negative impact missed payments or late payments have on your credit record, you will also avoid penalties or interest and fees for late payments. This also extends to things like traffic infringements. Normally you have a period of reduced fees for traffic infringements over the course of the first few months of being notified about these. If you pay your infringements during this period, you can save a significant amount of money by settling these earlier. Paying your taxes on time also saves you from late penalty fees and interest costs that can be easily avoided.
#3 Fuelling big petrol and diesel cost savings for the industry
After innovating the category of minibus taxi insurance way back in 1991,but being one of the first companies to help insure taxis, CTU continues to create innovative offerings for the industry. This includes CTU-FUEL, which is a fuel relief programme. Amongst other benefits, CTU-FUEL provides taxi operators and owners with benefits such as the ability to save up to 70c per litre on Diesel and 13c per litre on Petrol allowing for huge savings on operating expenses, as well as obtaining access to electronic fuel management system that enables programme members to track their deposits, transactions, vehicle consumption and savings to run their business more efficiently.
#4 Taking care of your vehicle, so that this tool of trade takes care of your business needs
You should service your vehicle at the regular and manufacturer recommended service intervals in order to help keep fuel usage down. Keeping the tyres inflated at the correct levels also assists in this regard. Servicing your vehicle also helps pick up any defects or worn items that may ultimately result in accidents, so it is good for safety. Extended warranties for older vehicles that are out of their service and warranty plans will also help. Consider products such as motor warranty insurance, which covers the associated costs of mechanical and/or electrical damage that result in your vehicle breaking down.
Hopefully, these tips will help you cut back on costs, incur some savings, and assist your business to take the offramp onto Prosperity Avenue this National Savings Month.
